This article is credited to Money Management.
Distribution teams are moving from selling products to shaping them as alternative fund managers involve them in the product development of new vehicles for the wealth and wholesale markets.
As alternative fund managers seek to move away from solely the institutional channel to also work with private wealth advisers, family offices and high-net-worth clients, they are relying on their distribution teams to ensure future launches meet client needs.
Recruitment in this area of alternatives and private markets is in high demand, contrary to activity at traditional fund managers.
A white paper from investment platform SILC – The future of alternatives – stated when it comes to hiring distribution teams, their input in the product development process is happening at an earlier stage as firms rely on them to understand investor preferences, capital flows and market dynamics.
They can influence decisions around fund structure, liquidity profile, governance arrangements and target investor segments, improving alignment between the product being developed and what the market is actually calling for.
“The role of distribution agents, whether they are internal sales teams, private wealth channels or consultants, is poised to expand their input to earlier in the lifecycle of a fund, particularly at the establishment stage.
“This shift reflects the recognition that successful capital raising is increasingly dependent on how well a product aligns with investor needs, regulatory expectations and distribution channels from inception. They can offer that connection with the end client the asset managers often lack.
“By engaging at the product development stage, they can influence decisions around fund structure, liquidity profile, governance arrangements and target investor segments. This can materially improve the effectiveness of distribution as products are designed with a clearer understanding of demand.”
Alternatives and private market managers are also utilising ‘placement agents’ who are typically engaged on a mandate basis to support capital raising for specific strategies or fund vintages. These will sit alongside the internal permanent distribution team who drive capital raising across the whole product range.
Having the right structure and framework in place as well as a vehicle that meets investors’ needs, which will typically vary significantly from those of an institutional investor, can be the make-or-break factor when it comes to capital raising.
A separate report by Kaizen Recruitment agreed a distribution candidate’s insight into these channels is a key criterion during the hiring process.
“Firms have a growing requirement for experienced wholesale business development managers with genuine networks across private wealth and family office segments,” it said in its July 2026 Market Update.
“Firms are consistently seeking experienced wholesale BDMs with deep networks across private wealth and family offices and a demonstrated track record of capital raising.”
Beyond capital raising, once the product is out in the market, it is then the job of the distribution team to necessary they educate the client on the technicalities of alternatives.
“The need for clear communication, technical know-how and tailored engagement becomes increasingly important. This places a premium on capabilities such as data analytics, technical marketing, digital communication and client servicing in the context of the advice practices own service model,” SILC said.
Alternatives recruitment
Looking back on the last 12 months, Kaizen found that, while recruitment activity among traditional active fund managers had been relatively flat, private markets proved an outlier of this trend.
“Private debt, however, stands out as a notable exception, with strong demand for investment professionals across a range of seniority levels as firms continue to expand their capabilities and investors allocate increasing capital to the asset class,” it said.
“More broadly, private markets capability holds a strategic priority across superannuation funds, wealth managers and family offices.”
Expertise in alternatives was particularly sought-after, with roles in this area becoming one of the most in demand within the investment management sector over the last year.
“The rising need for professionals with experience across private markets, infrastructure, private credit and other alternative investments is particularly strong in wealth management and family office environments as investors seek greater diversification and differentiated sources of return.”
